Prologis Reports 9.3% Revenue Growth to $2.14 Billion in Q1 2025

Prologis, Inc. reported a strong financial performance for the first quarter of 2025, with total revenues reaching $2.14 billion, a 9.3% increase from $1.96 billion in the same period last year. The company's net earnings attributable to common stockholders were $591.5 million, up from $584.3 million in the prior year, resulting in a diluted earnings per share of $0.63, consistent with the previous year. The increase in revenue was primarily driven by a rise in rental income, which amounted to $1.99 billion, compared to $1.83 billion in the first quarter of 2024.

In terms of operational metrics, Prologis reported an occupancy rate of 95.1% across its portfolio, with a significant rent change of 53.7% on leases that commenced during the quarter. The company also expanded its real estate investments, with net investments in real estate properties increasing to $79.45 billion as of March 31, 2025, from $78.49 billion at the end of 2024. The total assets of Prologis stood at $95.99 billion, reflecting a slight increase from $95.33 billion at the end of the previous fiscal year.

Strategically, Prologis has been active in acquisitions and development, starting 11 new development buildings during the quarter, which is an increase from 7 in the same period last year. The total expected investment for these new developments is approximately $646 million. The company also contributed properties to its unconsolidated co-investment ventures, generating net proceeds of $174 million and realizing net gains of $64 million. This activity underscores Prologis's strategy of recycling capital back into its investment activities.

The company’s debt increased to $32.26 billion from $30.88 billion at the end of 2024, with a weighted average interest rate of 3.1%. Prologis maintained a strong liquidity position, reporting total available liquidity of $6.5 billion, which includes $5.8 billion in borrowing capacity on credit facilities and $671 million in cash and cash equivalents. The company remains committed to its growth strategy, focusing on expanding its logistics facilities and enhancing its service offerings to meet evolving customer needs.

Looking ahead, Prologis anticipates continued demand for logistics real estate driven by long-term trends such as e-commerce growth and supply chain modernization. However, the company acknowledges potential short-term challenges due to economic uncertainties, including tariff policies that may affect customer decision-making. Despite these challenges, Prologis is well-positioned to capitalize on opportunities in the logistics sector, supported by its strong balance sheet and strategic investments.